[Featured Stock] Emart Surges Over 6% on Strong Q1 Earnings Expectations

Emart's stock price is showing a rise of over 6% in the morning session on the 21st, driven by expectations of strong first-quarter earnings.

As of 10:20 AM, Emart's shares are trading at 83,900 KRW per share, up 6.34% compared to the previous close.

This is analyzed as a result of buying pressure following expectations that Emart's first-quarter operating profit will significantly exceed market forecasts.

On the same day, Korea Investment & Securities raised Emart's target price by 27.8%, from 90,000 KRW to 115,000 KRW, maintaining it as the top pick in the sector due to the strong earnings outlook. The consolidated operating profit for the first quarter is estimated at 144.6 billion KRW, surpassing market expectations by 31.9%.

Myungjoo Kim, a researcher at Korea Investment & Securities, stated, "This year marks a period when the company's joint purchasing and the easing of competition within the industry are happening simultaneously," and evaluated that the Homeplus incident is also a factor easing competition within the industry, which is positive for Emart. He added, "Although there may be short-term stock price adjustments due to sector rotation, considering factors such as improved store efficiency and the establishment of the Alibaba JV, these valuation recovery factors make any price adjustments a good buying opportunity."